Upmove in the US 10 year yields is hurting the emerging markets (EM) and Asian currencies. However, thin year end liquidity has not allowed for a bigger move in the pair.
In the morning,state run banks were heard to be buying US dollars, probably on behalf of PSU oilers. Tomorrow we can expect Indian rupee in a range between 61:80/85 and 62:15/20 on spot.
By Anindya Banerjee, Senior Manager, Broking-Currency Derivatives, Kotak Securities
(Views expressed here are those of the author)